Korea and Hong Kong to Collaborate in Cracking Down Illegal Foreign Exchange Transactions of Cryptocurrency

02/16/2023 06:41 • Blockchain Briefs • 84 views

On February 16, in order to crack down on illegal foreign exchange transactions related to virtual assets (cryptocurrency), the Korean Customs Office decided to promote the exchange of foreign exchange crime information with the customs authorities of Hong Kong, China. Yoon Tae-sik, the director of the South Korean Customs Department, held bilateral talks with He Pei-shan, the head of the Hong Kong Customs Department, in Hong Kong yesterday and discussed these plans.

South Korea and Hong Kong strengthen cooperation to combat illegal foreign exchange transactions related to cryptocurrencies

Analysis based on this information:

Recently, the Korean Customs Office has decided to collaborate with the customs authorities of Hong Kong, China, to combat illegal foreign exchange transactions related to virtual assets, particularly cryptocurrency. The decision was made with an aim to crack down on the illicit activities that often take place using cryptocurrency as it is becoming increasingly popular in global markets.

According to reports, Yoon Tae-sik, the director of the South Korean Customs Department, met with He Pei-shan, the head of the Hong Kong Customs Department, in Hong Kong on February 16, to discuss and promote the exchange of information about foreign exchange crime. The talks focus on how they will work together to track down and eliminate any illegal foreign exchange activities related to cryptocurrency.

As cryptocurrency grows in popularity, so does the risk of fraudulent activities such as money laundering, terrorism financing, and other financial crimes that can be committed using untraceable digital currencies. Hence, the collaboration between Korea and Hong Kong is a vital step in reducing the risks associated with irregular practices; this will lead to improved regulation, credibility of the market and the financial system as a whole.

This development is part of the government’s efforts to strengthen its regulatory framework on virtual asset transactions, such as the revised crypto bill recently passed by the South Korean National Assembly. The law requires virtual asset service providers to enforce real-name verification for their users, boost their reporting obligations, and incorporate measures to deter money laundering activities.

In conclusion, the joint efforts of the Korean and Hong Kong Customs Offices signify a significant move towards the elimination of illegal foreign transactions related to cryptocurrency. Their collaboration is an important step in addressing the uncertainties and risks posed by cryptocurrency transactions, which can alter the financial ecosystem. This will promote the regulation of digital assets in a manner that will encourage its acceptance and facilitate its growth.

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